The July goods deficit hit a record for the year at $119.59 billion, according to Thursday’s data from the U.S. Bureau of Economic Analysis (BEA). If oil and gas export values are removed, the goods gap with the world for July comes in at $128.55 billion.
In one August week, Washington reopened the border to Mexican cattle, expanded low-tariff beef imports, and finally turned to the packers. Only one targets the real problem.
![Mexico’s top trade diplomat, Marcelo Ebrard, was in Washington for several days last week [from Aug. 24 to Aug. 26] but quietly left empty handed on Wednesday.](https://prosperousamerica.org/wp-content/uploads/2026/09/claudia-sheinbaum.jpg "claudia-sheinbaum")
Mexico’s top trade diplomat, Marcelo Ebrard, was in Washington for several days last week [from Aug. 24 to Aug. 26] but quietly left empty handed on Wednesday.
The collapse of the U.S.-Canada trade negotiation on August 21 drew headlines and criticism aimed at Washington. What the criticism misses is that the deal on the table would have undercut a key plank of U.S. reindustrialization policy and a vital supply line for national security.
New data showing a sharp increase in Mexican heavy-duty truck production and exports to the United States underscores the importance of maintaining strong tariff protections that encourage commercial vehicle production and investment in the United States.
President Trump was right to strengthen the Section 232 tariffs on steel and aluminum, and the breakdown of these negotiations should put an end to proposals to weaken them.
If Canada wants a deal, there is no shortage of things Ottawa can put on the table — America’s national security tariffs on aluminum and steel are not among them
The report documents how goods subject to higher U.S. tariffs are routinely rerouted through lower-tariff countries, undermining both tariff enforcement and American manufacturing.
For years, the de minimis loophole allowed foreign shippers to send packages valued at up to $800 into the United States duty-free, tax-free, and with virtually no customs scrutiny — so long as the foreign vendor merely alleged the value was below the threshold.
The companies that spent a year insisting tariffs were a tax on consumers are now cashing the refund checks themselves.
